SUPREME COURT

Dominion, Volume 12, Issue 72, 19 December 1918, Page 7

SUPREME COURT

SUPPLY OF GAS

LOWER HUTT AND PETONE BOROUGHS In the Supremo Court yesterday, before llih Honour the Chief Justice (.Sir Robert Stout) and His Honour Air. Justice Jlo.sking, tho Borough of Lower Hiitt asked fist an order under.an originating summons determining the following questions, tho dcfo'iulant being tho Potono Borough, and the supplier of gas to tho plaintiff borough:— Whether (a) the defendant corporation is bound to supply all the gas wiiich the plaintiff corporation requires for uso either for public or private consumption, of a quality and under such pressure as may bo. sufficient for such public or private consumption, or whether (l>). irrespective of such sufficiency, the obligahpn of the defendant corporation is limited as regards power and pressure by an. agreement dated November 1, 1913, between tho plaintiff and the defendant. ■ Mr. E. P. Bunny appeared for tho Lower Hutt. Borough, and'contended that Clitiife 8 of the agreement was not intended to bo the limit of pressure necessary to enable the Petone Borough Council'to fulfil its obligation as the ?nle supplier of gas, but that pressure re determined by tho Gas Supply Act. 1803, the Municipal Corporations Act, 1903. the Side of Goods Act, 1908. mid tho fact that the obligation of the Lower Ifutt Borongh Council should supply n proper pressure to its own consumers connotes also an obligation-on the defendant council to whom it had delegated its rights as solo supplier to put it into a, position to fulfil its duty to the consumers. The clause was not inserted for (he benefit of the PetO'ie Council, but to warrant to the Lower Unit Council a minimum requirement as to pressure. Mr. Bunny submitted that Clauso 8, read with Section 2 of the Goods Supply Act, defines Hie pressure as follows:—"The quality of tho said gas shall be of a sufficient pressure ami of a minimum lighting power of " He pointed out that for nearly twenty years the Petone Council had boon I lie sole supplier of gas, and pressure had always been as required to adequately provide a proper system, and Unit there had been no means ivliereliy if tho pressure whs insufficient it could be obtained in any other wiiy than'from the l'otone Oonneii. The defendant corporation was therefore in this position, eirher it must accept (i>) the construction that the buyer merely intended to have tho minimum pressure defined, or (b) lliat in undertaking the contract it had itself fixed <i pressure fa inadequate as to render the service unfit for the purpose of a proper gas jmpply. For the' defendant lwrongh Mr. P. C. Kirfc slated that the Potono Boroiurlr "•"•i , :•. liisrhrr pressure than was provided for in the agreement between the parties, for some, time, while there was no monetary to the Petone Borough, but when (he prjee of coaj was advancedRtul t.'i(> .cost of labour increased, then Petone was unable to continue the grntv nitons pressure,- and coiiseriiienlly reduced the -pressure to the point stipulated in the. agreement.- ; ■ . '• After lionruipr Hip evidence of Mr. W. Ferguson their Honours.reserved decision.